Zillow Q2 and H1 2025: Revenues Up 14.5% as Lawsuits Loom

Zillow has released its financial statement for the second quarter and the first half of the year, recording double-digit growth across key business segments.

Highlights for the quarter include:

• Q2 revenues reached $655 million, up 14.5% YoY
• Residential revenues edged up 6% to $434 million
• Mortgage revenues increased by 41% to $48 million
• Rentals revenue increased by 36% to $159 million, contributing 24% of total revenue
• Adjusted EBITDA was $155 million, up 16% YoY
• Net income of $2 million, an improvement from a loss of $17 million in Q2 2024

Highlights for the first half of the year include:

• H1 revenues hit $1.25 billion, up 13.8% YoY
• Residential revenue was $851 million, up 6% YoY
• Mortgage revenue was $89 million, up 36.9% YoY
• Rentals revenue increased by 35% to $288 million, contributing 23% of total revenue
• Adjusted EBITDA was $308 million, up 19% YoY
• Net income of $10 million, an improvement from a loss of $40 million in H1 2024

Jeremy Wacksman, CEO at Zillow, said:

"We know our [For Sale] strategy is working because consumers and real estate professionals like what we have to offer, and because our For Sale revenue growth continues to outpace industry growth.

"This strategy comes to life in our Enhanced Markets, where we’re connecting high-intent movers in these markets with high-performing professionals and delivering a more integrated transaction. In Q2, 27% of connections came through the Enhanced Market experience, toward our goal of more than 35% by year end.

"Zillow Showcase is now on about 2.5% of new listings, compared with just over 1% a year ago."

"Overall, Zillow is delivering growth, managing costs, and leading industry innovation to provide a seamless, tech-enabled experience for movers and real estate professionals. We’re on track toward the full-year 2025 targets."

Zillow's Sales, Rentals and Mortgage segments all saw solid growth for the quarter.

Zillow said of its Rentals segment:

The increase in Rentals revenue was primarily due to a 21% increase in quarterly revenue per average monthly rentals unique visitor to $4.42 for the three months ended June 30, 2025 from $3.66 for the three months ended June 30, 2024, primarily driven by growth in multifamily property listings which drove a 56% increase in multifamily rentals revenue.

The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 13% to 36 million during the three months ended June 30, 2025 from 32 million during the three months ended June 30, 2024.

Mortgage growth (41% YoY) was driven by a 48% growth in purchase loan origination volume to $1.1 billion for the quarter, while Zillow says its strategy is to funnel buyers towards its Home Loans product.

Zillow's Q3 forecasts said:

We expect Q3 For Sale revenue growth to be similar to the For Sale revenue growth reported in Q2, with Residential revenue growth in the mid-single-digit range and Mortgages revenue growth in the high 20% range. We expect Zillow Home Loans purchase loan origination volume to grow more than 40% in Q3.

In Rentals, we expect revenue growth to accelerate, increasing more than 40% year over year in Q3, driven by further acceleration in multifamily revenue.

Lawsuits and controversy remain an unwelcome headache as Zillow pushes forward

Zillow lauded its ability to outperform the industry in its quarterly statement, and internal performance and strategic priorities appear to be paying dividends pretty much across the board.

But storm clouds are gathering. Zillow is facing significant legal challenges after being named as the defendant in two major lawsuits in the past two months.

Firstly, brokerage Compass targeted Zillow's controversial listings ban, branding the real estate giant anti-competitive and monopolistic.

Zillow announced earlier this year that it will warn and subsequently ban realtors from having their properties for sale uploaded to Zillow if they do not upload new listings to an MLS in a timely fashion.

Compass argues that Zillow has no right to play gatekeeper for how people sell their homes.

See our podcast with Compass' Rory Golod here:

CoStar boss Andy Florance also weighed in on the Compass lawsuit, urging agents to stand up to Zillow's "bullying" tactics.

Perhaps more damagingly for Zillow, CoStar has also launched a second legal headache against its rival: a massive copyright infringement lawsuit against Zillow for alleged illegal use of more than 46,000 images on Zillow and syndication partners Redfin and Realtor.com.

Described as "rampant" and "brazen" by CoStar, the lawsuit accuses Zillow of at least 250,000 instances of CoStar-owned images appearing on its portal, with a potential exposure to more than $1 billion in damages for its misuse.

Florance said, "Zillow’s theft of tens of thousands of CoStar Group’s copyrighted photographs is nothing short of outrageous," while Redfin and Realtor.com were warned about their conduct, despite not being named as co-defendants.